Thread by @RajeevthePawar

Hearing the RBI Guv and the #Fed Chair talk over the past 24 hrs two interesting differences come through. Dr. Das is much more confident though reserved in committing to numbers. Jay Powell is more transparent but does not exude confidence in his words. /1

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RBI Guv was quite clear that there is limited fiscal space. Wanted spending esp of PSUs to be front loaded. /2

#RBI #India #ratecut

On bond yields he felt the recent spike in yields was largely specific, external event driven. /3

#RBI #India #ratecut

On rates the RBI Guv said that inflation and growth projections will be presented to the MPC which would decide. He however did say that inflation was under control. /4

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He refused to commit himself at all on the rupee. Re stated the old line of not having a target and intervening on either side to reduce volatility. However he felt the Saudi impact had been contained. /5

#RBI #India #ratecut

Clearly the Guv is clued in to markets. He had the latest crude prices and the closing 10 yr govvie yields at his fingertips. /6

#RBI #India #ratecut

On monetary policy he did not foresee the use of any new products and felt that rate cuts and liquidity infusion would work well. /7

#RBI #India #ratecut

Interestingly the Guv had no target for real interest rates. In fact he said the RBI cannot have multiple targets or objectives and that it will stick to its twin objectives of price stability with growth. A big change from his predecessors. /8

#RBI #India #ratecut

The Guv hinted that further measures from the govt to boost the economy could come if required. He was not happy with the constant talk of gloom and doom /9

#RBI #India #ratecut

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